Historically Dallas’ real estate market has been slow and steady, with moderate 2-3% per year appreciation, roughly tracking local inflation. But in the last five years Dallas’ Housing Market has changed significantly, with home prices surging past the underlying levels of broader price and wage growth in the local economy.
These new levels of home price growth have spread across the metro area, from the city of Dallas to northern cities like Frisco, Plano, and Denton. Frisco’s Housing Market (located in Collin County) has been especially hot over the last year, with appreciation levels nearing 25%.
The problem? Underlying fundamentals in the Dallas economy don’t appear to support these price growth levels. For starters, inflation and wage growth have not come close to keeping up with home prices. But perhaps even more importantly – the levels of job growth and migration are not keeping up either.
While Dallas is one of the top growth markets in America – particularly its Northern Suburbs in Denton and Collin Counties – its growth has not increased substantially over the last five years. This raises questions about how sustainable the current Housing Market is across the metro.
Especially considering how many new homes and apartments are being permitted and built. Dallas, like most of Texas, loves to build. And with lots of land and lax zoning regulations, home builders and apartment developers throw up new housing units left and right. So much so that there has been a 35% increase in single-family permitting in the Dallas metro over the last 12 months.
It’s difficult to find a data point which supports the current level and growth rate of home prices in Dallas. To support these levels either migration or wages needs to grow considerably. Short of that it’s possible that could experience a Housing Crash!
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0:00 Dallas Housing Boom!
1:11 Home Prices v. Inflation
3:39 The BIG 4 Counties
6:12 What are YOU Looking For?
7:11 Dallas / Tarrant / Denton / Collin – Home Prices Over Time
10:00 Frisco Appreciation & Rent Surge!
13:26 Collin County Migration Levels
15:32 Lots of New Building
17:03 Acres and Acres of Land in Frisco
19:32 What’s Going to Happen?
21:15 HELP Support the Channel!
#DallasHousingMarket #HousingBubble #HousingCrash